Ling Yue Services Group Limited has released supplementary information on its Capital Injection Agreement for a 25% stake in a Chengdu residential development, detailing funding flows, investor protections and project outlook. Key points follow:

Investment Structure and Cash Flows • Xingsheng Huashang, the existing shareholder of the target project company, had advanced RMB244.93 million (USD-equivalent) to the project by 1 March 2026.   – Bid deposit: RMB63.00 million   – First land grant premium tranche: RMB156.66 million   – Land-related fees and bidding services: RMB9.88 million   – Urban infrastructure & construction outlays: RMB14.83 million   – Selling/administrative expenses: RMB0.31 million   – Taxes and cash balance: RMB0.20 million and RMB0.05 million, respectively.

• Huichen Jingyue, Ling Yue’s wholly owned subsidiary, will reimburse 25% of the shareholder advances (RMB58.73 million) to Xingsheng Huashang, matching its post-injection 25% equity stake.

• Additional land payments made after 1 March 2026 total RMB104.21 million, comprising RMB94.14 million for the second land premium tranche and RMB10.07 million in deed tax.

• Interest on Xingsheng Huashang’s advances accrued at 6% per annum, resulting in RMB1.44 million payable by Huichen Jingyue, settled on 15 April 2026. The Board deems the 6% rate in line with market practice for unsecured, related-party funding in China’s real-estate sector.

Capital Protection and Exit Mechanism • Upon meeting project milestones—95% of saleable residential GFA sold, completion filing, and start of delivery—Huichen Jingyue may exit via a “notional liquidation.” • Huichen Jingyue receives its full attributable profit first; any residual gains or losses revert to Xingsheng Huashang. • If the simulated net profit is negative, Xingsheng Huashang must cover Huichen Jingyue’s share, ensuring no impairment of Ling Yue’s capital injection or shareholder loans. • Post-distribution, Xingsheng Huashang must repay Huichen Jingyue’s shareholder loans within 30 days, after which Huichen Jingyue will transfer its equity at cost.

Due Diligence and Cost Verification • Independent firms—Chengdu Xinhe United CPA (financial), Sichuan Shanjia Law Firm (legal) and Beijing Zhuoxin Dahua Asset Appraisal (valuation)—reviewed all major expenditures. • The land premium of RMB313.80 million was confirmed against government auction records for parcel SLG-(07)-2025-015. • Urban infrastructure fees of RMB12.21 million align with Chengdu municipal tariffs, while construction and service fees were benchmarked to market rates.

Board Assessment The Board views the transaction as fair and beneficial, citing: 1) pro-rata funding aligned with the 25% stake; 2) absence of external debt, limiting financial leverage; 3) commencement of pre-sales in June 2026, supporting near-term cash inflows; 4) strategic location in Shuangliu District, Chengdu—an area with 2025 GDP of RMB130.76 billion and the city’s fastest population growth; 5) guaranteed capital preservation and priority profit distribution; 6) use of internal funds, with no impact on IPO proceeds.

Project Snapshot • Location: Jiujiang New Town, Shuangliu District, Chengdu. • Land area: 19,134.49 sq m; planned saleable GFA: 38,268.98 sq m (plot ratio 2.0). • Product positioning: premium, family-oriented residential units targeting middle-to-high-income owner-occupiers. • Key advantages: proximity to quality schools, ecological zone and metro lines 3, 17 & 19. • Timeline: construction began October 2025; pre-sale permit obtained 29 May 2026; project completion and deliveries expected 1H 2028.

Strategic Rationale Leveraging its property-management insights and the development experience of its executive directors, Ling Yue Services intends to participate selectively in debt-free projects with clear return visibility. The current investment is framed as a one-off opportunity rather than a broad expansion into property development.